SHANGHAI, Mar 23 (SMM) - The global nickel market may see a supply deficit of 157,100 mt in 2022, compared to a surplus of 103,700 mt in 2021, according to data released by the International Nickel Study Group (INSG). The Lisbon-based INSG added that in January this year, the nickel market was oversupplied by 6,000 mt, compared to a shortfall of 5,300 mt in the same month last year.
However, according to the “SMM quarterly primary nickel supply and demand balance”, primary nickel shifted from oversupply to tight supply in the first and second quarters of 2021, and was basically in a state of oversupply in the third and fourth quarters, with total primary nickel supply of 415,000 nickel mt and total demand of 404,800 nickel mt as of the fourth quarter of last year.
However, SMM believes that global primary nickel supply and demand will shift from a deficit in 2021 to a surplus in 2022, with both supply and demand dynamics having structural problems.
Nickel pig iron is likely to turn into a cyclic surplus and will dominate the supply surplus pattern of primary nickel. Nickel sulphate and other raw materials for stainless steel are likely to maintain a short-term supply tightness because of capacity structure as well as process problems, while the market will still remain in surplus in the medium and long-term. Pure nickel inventory is expected to keep falling in the first half of 2022, but LME inventory’s rate of decline is likely to slow down, with nickel briquette inventory falling the fastest.
For more details, please keep an eye on 7th International New Energy Forum and China Ni-Co-Li Summit to be held in Chengdu, Sichuan on April 27-29, 2022.
[Disclaimer: The above representation and data is based on market information SMM believes to be reliable at the time of acquiring as well as the comprehensive assessment by SMM research team, and any and all information provided in this article is for reference only. This article does not constitute a direct recommendation for investment or any decisions in any form and clients shall act on their own discreet and any decisions made by clients are not within the responsibility of SMM.]
